And now, Thanks to Dodd's "Financial reform bill" we will now be seeing Fraudulent carbon trading/swapping transactions on the US stock exchange. That's right, Cap and Tax is finally about to be a true reality, thanks to Sen. Dodd's bill. The new bill not only makes the big banks on wall st. much more powerful and dangerous, but it also sets up a new type of CDO/CDS derivatives based system. They are called "Over the Counter Carbon Derivatives Swaps". (Explained here)


http://www.nakedcapitalism.com/2010/05/guest-post-cap-and-trade-is-...

James Hansen – the world’s leading climate scientist fighting against global warming – told Amy Goodman this morning that cap and trade not only won’t reduce emissions, it may actually increase them:

The problem is that the emissions just go someplace else. That’s what happened after Kyoto, and that’s what would happen again, if—as long as fossil fuels are the cheapest energy, they will be
burned someplace. You know, the Europeans thought they actually reduced
their emissions after Kyoto, but what happened was the products that
had been made in their countries began to be made in other countries,
which were burning the cheapest form of fossil fuel, so the total
emissions actually increased…

See also this and this.

Environmental groups such as Friends of the Earth and Greenpeace are also against cap and trade (and see this and this), as is the head of California’s cap and trade program for the EPA.

Hansen also told Goodman that (notwithstanding Paul Krugman’s assertions) most economists say that cap and trade won’t work:

I’ve talked with many economists, and the majority of them agree that the cap and trade with offsets is not the way to address the problem.

As I have previously pointed out:

• The economists who invented cap-and-trade say that it won’t work for global warming

• European criminal investigators have determined that there is a tremendous amount of fraud occurring in the carbon trading market. Indeed, organized crime has largely taken over the European cap and trade market.

• Former U.S. Undersecretary of Commerce for Economic Affairs Robert Shapiro says that the proposed cap and trade law “has no provisions to prevent insider trading by utilities and energy companies or a financial
  meltdown from speculators trading frantically in the permits and their
  derivatives.”

• Our bailout buddies over at Goldman Sachs, JP Morgan, Morgan Stanley, Citigroup and the other Wall Street behemoths are buying heavily into carbon trading (see this, this, this, this, this, this and this).
  As University of Maryland professor economics professor and former
  Chief Economist at the U.S. International Trade Commission Peter Morici
  writes:
  

  Obama must ensure that the banks use the trillions of dollars in federal bailout assistance to renegotiate mortgages and make new loans to worthy homebuyers and businesses. Obama must make certain that banks do not continue to squander federal largess by padding executive bonuses, acquiring other banks and pursuing new high-return, high-risk lines of businesses in merger activity, carbon trading
  and complex derivatives. Industry leaders like Citigroup have announced
  plans to move in those directions. Many of these bankers enjoyed
  influence in and contributed generously to the Obama campaign. Now it
  remains to be seen if a President Obama can stand up to these same
  bankers and persuade or compel them to act responsibly.

  In other words, the same companies that made billions off of derivatives and other scams and are now getting bailed out on your dime are going to make billions from carbon trading.
  

One the largest boosters for cap and trade invented credit default swaps – which were supposed to increase financial stability, but instead were a large part of the reason that the world economy crashed last year

Jeanne Roberts provides an update at environmental website Celsius:

The E.U. carbon emissions trading fraud is huge, but perhaps nothing compared to the potential for cheating that will become available in the United States once Waxman-Markey, or some similar
scheme for reducing carbon emissions, emerges from the Senate to become
law.

***

As Bloomberg notes, a carbon trading market organized around derivatives (sometimes known as credit default swaps, or CDS) is “open to manipulation,” in the words of billionaire hedge fund investor
George Soros.

In fact, some old-school environmentalists see the whole carbon trading scheme as not a way to curb climate change, but merely a way to make the rich even richer at the expense of the rest of us. As Larry
Lohmann, the founding member of the Durban Group for Climate Justice,
says, “Dishonesty is rife throughout the carbon offset market.”

In January, investigators from Belgium said that in some E.U. countries, 90 percent of the market volume in carbon trading was based on criminal activities.